In the Keynesian model, an introduction of a proportional tax will: (a) increase the slope of the consumption function. (b) reduce the multiplier. (c) increase the equilibrium level of income. (d) increase the multiplier.
In the Keynesian model, an introduction of a proportional tax will: (a) increase the slope of the consumption function. (b) reduce the multiplier. (c) increase the equilibrium level of income. (d) increase the multiplier.
Chapter18: The Keynesian Model
Section: Chapter Questions
Problem 7SQ
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In the Keynesian model, an introduction of a proportional tax will:
(a) increase the slope of the consumption function.
(b) reduce the multiplier.
(c) increase the equilibrium level of income.
(d) increase the multiplier.
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